New York City has launched a new freight pilot that uses its waterways to move goods instead of relying almost entirely on trucks, a shift city leaders say could reduce congestion, cut emissions, and make deliveries more reliable.

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The pilot activates a marine freight route between Manhattan’s Pier 79 and the Brooklyn Marine Terminal in Red Hook as part of the city’s Blue Highways program. Goods are moved by ferry across New York Harbor, then transferred to electric cargo bikes for delivery in Manhattan, covering an area from 23rd Street to 70th Street.

“Waterways are the new highways in New York City! New York’s waterways built this city—now they’re helping us create a cleaner, safer, and smarter way to deliver the goods New Yorkers rely on,” said NYC DOT Commissioner Ydanis Rodriguez. “Blue Highways is how we shift from a 20th century freight system to a 21st century one, and when we move goods by water and deliver them by sustainable modes of transportation like cargo bikes, everyone wins—our streets, our air, and our neighborhoods.”

DutchX and NY Waterway are operating the route, which is expected to handle 300 to 400 parcels per day to start. The deliveries include cosmetics, fashion items, lifestyle goods, and small household products. The city plans to increase volumes as the pilot progresses, while tracking data such as capacity and reductions in truck miles traveled.

Nearly 90 percent of goods moving into and through New York City currently travel by truck, creating congestion at key chokepoints and adding pollution to already crowded neighborhoods. City officials say using waterways for freight adds resilience to the supply chain and taps into New York’s long history as a port city.

“Our city’s waterways are key to getting trucks off Manhattan streets while getting freight delivered more quickly and efficiently than ever before,” said NY Waterway President and CEO Armand Pohan.

The city is also exploring similar water-based freight models at three additional locations: Pier 11, the 34th Street Pier, and the Battery Maritime Building. Officials say the long-term goal is to build a network of water routes that can handle more online orders without putting more trucks on city streets.

“Launching service from Atlantic Basin to Pier 79 shows what becomes possible when the waterways support the final stages of the supply chain,” said Marcus Hoed, Co-Founder of DutchX. “It proves that better options exist, and it is only the beginning of what this system will unlock.”